Hiring the best business broker Orange County is obviously the first thing you need to do when getting ready to sell a business. The broker will be your guide throughout the process. For you to sell fast and get the best price for your business there are a couple of things you will have to do.
Sell at the right time
In real estate, location is everything but in the sale of a business timing is everything. The best time to sell is when your business is doing really well. Don’t wait until it starts stagnating or failing to sell it. It will be much easier to sell and get the best price when your business is doing very well. Business brokers Orange County will also consider the current market and let you know if it is the best time to sell or not.
Be clear on what you want to sell
A business valuation needs to be performed before you list your business. This will help understand the market value of your business. The next thing you have to do is determine what you want to sell. Do you want to sell the whole business or part of it? This is information you need to give to your business broker upfront. It is also good to remember that selling a business also includes such assets as trademarks, goodwill, client lists and physical assets. If yours is an incorporated business, you have to decide if you want to go with an asset sale or share sale.
Get your house in order
One of the key duties of a business broker Orange County is to help you get your business ready for sale. Prior to listing the business, you have to make sure that everything is in tip-top shape. This will pay off significantly. You need to gather the financial records for the last three years and clean them up. Your business records need to be up to date in order for you to win the trust of potential buyers. Now is also the best time to reduce liabilities in order to get the best price.
Get your team ready
A business broker is not the only professional you will need. You also need to hire a transaction attorney, financial advisor and accountants. These professionals will work with your business broker to guarantee you sell at the best price.
Selling a business is not easy. You have to make sure that you take the time to do everything right. Proper preparation is very important. The good news is that the right business broker Orange County will help with that.
When it is time to sell your business, the first thing you need to do is hire a business broker Orange County. The broker will guide you through the sale process and ensure you get the best deal. But why would you want to sell a successful business? Needless to say, the best time to sell a business is when it is doing really well. That is when you can sell fast and get a good profit. In addition to that, here are the top reasons why business owners choose to sell their successful businesses.
Lack skills and energy to grow further
One of the main reasons why business owners choose to sell their successful businesses is when they feel they lack the energy, time, experience, skills and other resources to take the business to the next level. A business needs to grow continuously. There will, however, come a time when you feel that achieving any growth is impossible. When you feel this way, now is the best time to contact experienced business brokers Orange County. You need to entrust your business to a new owner who has the skills and resources to take it further.
Been offered a better opportunity
For most small business owners, they choose to sell when a better deal is put on the table. The risk of a business failing is pretty high. Most entrepreneurs choose to sell when they get the chance. They then use that money to start a bigger business. When you receive an offer that is too good to turn down, you should consider it keenly.
Need cash for another venture
Selling is also considered when money is needed to fund another venture. In this case a business owner can choose to sell the entire business or part of it to raise the money he needs.
Part of the exit strategy
With most experienced business owners, selling was always their part of their exit strategy. They sell when their business has attained a certain milestone. To most owners, selling is considered after achieving a certain growth level or after achieving long-term financial security
Need more time for personal life
At some point in time, a business owner may realize that the business takes up a lot of their time. When the time comes when you need to spend more time with family or your personal life, selling might be considered. The funds from the sale can be used to finance a side-hustle.
Want to retire
The main reason why business owners contact business brokers Orange County is because they are ready to retire. You cannot run your business forever. When you feel you no longer have the energy to run it, you can pass it on to a successor or simply sell it.
The reasons for selling are many. The above are just the main reasons. Always refrain from selling on your own. You need to work with an experienced broker to help with the sale.
If you are considering selling your business, consulting a business broker Orange County can help demystify things. A broker has more experience selling businesses and is familiar with all the reasons why business owners choose to sell. What is more is that the broker will help you prepare for the sale and ensure you sell fast and for the right price. In most cases, there are three reasons why business owners choose to sell.
An important piece of advice business brokers Orange County will give you is if you have a chance to liquidate your business, you should consider the opportunity seriously. This is because running a business is risky. The longer you hold on to your business the bigger the risk gets. When you have the perfect opportunity to sell you should seriously consider it. Your broker will also let you know that there is value in business but no liquidity until you go through with a transaction of selling part or all of your business.
Tired of risk
In the early stages of setting up your business, you will be confident to take risks. This is mostly because you have more value in your business yet to lose. Taking chances is what helps your business grow. Needless to say, as your business grows so does its value. As the value increases, most owners become conservative fearing greater damage than when the business was small. It is also good to note that older business owners no longer have the luxury of time to spend years on any damage control. As a result they avoid risks. When you are tired of risks, now is the best time to plan an exit strategy. This is a smart decision to make.
Time for change
The third reason why most business owners sell is because they want to move on to something different. Although a chance at liquidity is a great reason to sell, this is not the only reason why business owners choose to sell. Some owners just want to move on to something completely different because they no longer have the resources and energy to keep running the business. At times, when the business exceeds your skills, you may just want to sell. This happens mostly when business owners no longer feel in control.
Reasons for selling are many. The most important thing to do is to hire a competent business broker Orange County to help with the sale. Hire from a firm that has a good reputation for successfully selling businesses that are in your industry.
Every business broker Orange County will ask you to think twice before selling your business. The reason for this is because selling is a huge undertaking and the results are not as instant as you would want. Business brokers also want to be sure that you are a serious seller so that you don’t end up wasting their time. Prior to listing your business, there are a few questions you will need to answer.
Is the business ready to sell?
The first thing business brokers Orange County will want to know is your reason for selling. You cannot wake up one morning, decide to sell and hire a business broker. Brokers are paid once the sale is concluded. If you are not a serious seller, you will end up wasting their time.
Still on whether your business is ready to sell, you need to remember that it can take up to 2 years to sell a business. What is more is that potential buyers will want to see at least three years of your tax returns and financial records. When you decide to sell, you must make sure you are selling for the right reason and that all the documents are ready.
How will buyers value your business?
Business valuation is done differently. It mostly depends on the nature of a business. The good news is that your business broker Orange County will determine the right valuation approach and give you advice on how to proceed. Brokers also know what buyers are looking for and will help you get ready for the sale.
Do you have the right team?
The first person you should add to your team is an experienced business broker. This has to be a broker who has experience selling businesses that are similar to yours. Second, you will need a transaction attorney, and a financial advisor. Always remember that the buyer will have a good team that will comb through your business. Make sure you have a better team.
Is now the right time to sell?
Don’t wait until your business is going under to think about selling it. The best time to sell is when your business is doing very well. At this time you will be able to demand a higher price for it. The market climate will also matter. If the interest rates are too high, selling now might not be the best idea unless you plan on offering seller financing.
Can the business thrive without you?
Buyers don’t want to buy a business that is over dependent on the owner. They want a business that will run on autopilot after the transfer of ownership. You need to remove yourself from the daily operations of the business and make sure your business has a great management team.
These are just some of the main questions you need to ask. Your business broker will ask more questions before he agrees to work for you.
Hiring a business broker Orange County is the first thing you need to do when getting ready to sell your business. An experienced broker will help get the business ready, market it extensively to the right buyers and guide you through the sale. Even so, when you want to sell a business there are a couple of things you will have to do on your part.
Determine reason for selling
Now is the time to define your reason for selling. Remember that some business brokers Orange County will not work for you if they feel your reason for selling is not good enough. The reason for this is because most buyers with bad reasons for selling end up pulling out of the deal. Needless to say, a broker is paid once the business is sold.
The main reasons why small business owners sell include the following:
- Partnership disputes
- Death or illness
- Becoming overworked
There are other business owners whose goal was to eventually sell their business for profit. The decision to sell in this case is arrived at when the profits of the business increase, the business achieves a consistent income figure, there is a strong customer base or the business gets a contract that spans several years.
Time the sale
Timing is everything when it comes to the sale of a business. You should start preparing for the sale at least two years in advance. That will give you ample time to improve your financial records, customer base and business structure. These improvements will eventually make your business more attractive to buyers and smooth the transition.
Get a valuation
Your business broker Orange County will help with the business valuation. The purpose of this is to help you know exactly how much your business is worth. The appraisal will also help set the best asking price. A business appraisal gives more credibility to the asking price that you set.
Get documents ready
The due diligence stage is unavoidable during the sale of a business. This is the stage in which the buyer tries to validate all the information you provided and also to gauge if yours is a worthy investment. In preparation for this stage, you need to gather all your financial records, clean them and make them more presentable. Now is also the best time to fix the fixable flaws in your business.
Find a buyer
It takes between 6 months and 2 years to sell a business. Considering how involving the process is, you should always leave the marketing part to experienced business brokers Orange County. Your broker will market the business extensively, prescreen buyers, help with negotiations and let you know when the best deal is on the table.
When hiring a business broker Orange County you want to hire one that will help sell fast and at maximum profit. Even so, there is a part you have to play in order to speed up the sale. In this article we will be looking at the strategies you should consider if you want to sell your business fast.
Typically, business brokers Orange County will start preparing for a sale months or even years before the exit date. However, if you have to sell fast, time is not on your side. This means you have to consider the unconventional options too. Here are the best strategies an experienced business broker will recommend.
Reach out to likely buyers
As an experienced business owner you probably know several companies or individuals who might be interested in acquiring your company for either strategic or financial reasons. Now is the time to reach out to them. You can reach out to a targeted buyer and consider his interest. Always require potential buyers to sign an NDA before letting them know your intentions. The last thing you want is for word to get out and the value of your business to take a dive when your employees, lenders, customers and suppliers leave.
A business broker will also help you reach out to potential buyers. This is achieved first through listing sites. Established business brokerage firms already have contacts in their database that they can contact to gauge their interest. Reaching out to likely buyers is much easier and more effective when leveraging on the resources of a business broker.
Take yourself out of the daily operations
Buyers want to be certain that once they acquire your business it will not start failing. They consider your involvement in the business. If you make all the major decisions and your business is dependent on your reputation, selling will be hard. As a result, removing yourself from the daily operations of the business can help sell fast. You need to train or hire a new management team and document all the processes. The new owner should be able to run the business smoothly once you leave.
Sell to employees
One of the most satisfying ways to exit a business is to sell to an employee. The employee already knows how the business runs. What is more is that selling to an employee will lead to low employee turnover. Employee ownership is a great way to reward your loyal workers and guarantee the continuity of your business. Your business broker Orange County can help create an Employee Stock Ownership. This option has many tax benefits and offers great flexibility when it comes to involvement in the business.
Offer seller financing
Last but not least, you should think of offering seller financing. This is where you allow the buyer to pay the balance over a period of several years. Seller financing will help sell faster.
There are many more things you can do to sell fast. The rule of thumb, however, is to get expert help. Experienced business brokers Orange County will guarantee that everything runs smoothly throughout the sale.
Hiring a business broker Orange County is the best decision you can make when selling your business. This is because having an experienced broker by your side guarantees that you will deal away with the guesswork and the sale will complete fast and at the best price. But which services is a business broker able to offer you?
The first services all business brokers Orange County should be able to offer are business valuation services. This is performed to help determine the fair market value of a business as well as provide sellers and buyers with a certified business evaluation and appraisal. Prior to hiring a brokerage firm, you need to make sure that they offer valuation services. A good business broker will use textbook calculations as well as the conditions in the market to determine the best asking price.
Market the business
Another service you should get from a broker is the marketing service. The whole purpose of hiring a broker is to be able to advertise your business far and wide in order to get more buyers. Business brokers use multiple marketing channels to help you find the right buyer. What is more is that he will market your business to contacts already in his database and also liaise with other industry professionals to find the best buyer. This is done while maintaining confidentiality.
Guide you through the sale
Selling a business is not easy. It takes months and there are so many moving parts to keep your eyes on. Once you hire a business broker Orange County, he will take over the sale. This means you can focus on the core operations of your business while the broker handles the sale. The right broker will also help you prepare for the sale and assist with all the paperwork.
Provide financing assistance
The reason why most businesses remain on the market for long is because buyers lack the funds to finance the purchase. Business brokers Orange County can help your buyers secure financing. He has experience in the finance industry and will help buyers find financing assistance that is ideal for them. In addition to that, the broker can also help you, the seller, offer seller financing.
Not every buyer that comes knocking is interested in buying your business. Most just want to snoop around. One of the duties of a business broker is to prescreen buyers to make sure they are serious about buying your business, their interests align with yours and they have the means to finance the purchase.
Assist with negotiations
Last but not least, your business broker should be able to assist you with negotiations and closing. With the level of experience he has, only a broker will be able to help you get best deal.
These are just the main services you can expect from a business broker in Orange County. Don’t hire a broker for the sake of hiring one. Hire him because he can deliver results. You also need to read and understand the contract before signing anything with a broker.
Hiring a business broker Orange County must always be the first thing you do when you want to sell your business. The reason for this is because the broker has the experience and knowledge needed to guide you through the sale and guarantee that you get maximum profit. But why exactly is it a great idea to work with a broker.
The first benefit of working with experienced business brokers Orange County is that you will get an exact valuation report. Unlike valuation experts who only rely on textbook calculations to determine the value of a business, business brokers rely on proprietary data sites and current market conditions to provide you with an optimal asking price.
Greater market reach
This is another great benefit you stand to gain. Business brokers don’t just rely on one website but on dozens and even hundreds of websites. This will give you exposure not just in Orange County but in all states. More exposure means a wider reach which will lead to more buyers knocking on your door. Working with a business broker will give you reach that goes far beyond the local scene. You will have a better chance to find the right buyer.
Complete sale management
As you sell your business you have to ensure that you keep your business running optimally. A business broker will take over the marketing of your business so that you can focus on the core operations of your business. The whole sale process will be managed for you. The broker will even meet up with potential buyers, help with negotiations and also help with closing. You will only be involved when making major decisions such as accepting an offer from a buyer.
The grand beauty of working with a business broker Orange County is that you will leverage on negotiation expertise. Business brokers have long term experience with negotiations between sellers and buyers. They know how to structure the deal in order to streamline the process and guarantee the parties reach a solid outcome. You will be guaranteed of getting the perfect deal when working with a business broker.
Other notable benefits you stand to gain from working with a business broker include financial support, timeline control so that the sale concludes on time, improved experience during the sale and so much more. All you need to do is find a business brokerage firm that has a great reputation selling businesses that are similar to yours.
Hiring a business broker Orange County is the first thing you should always do when getting ready to sell your business. Even so, some people choose to sell on their own or even work with other professionals. After selling a house or piece of property, it is easy to assume that a real estate agent will be equipped to sell your business. The truth is he will not. In this post we will be taking a look at the top reasons why you should leave the sale of a business to a business broker and not any other professional.
Not constantly involved in the sale of businesses
The first reason why it makes sense to work with business brokers Orange County is because other professionals are not constantly involved in the sale of businesses. With experience comes wisdom, wisdom to do things in a unique way that guarantees remarkable results. This is what you get from working with a business broker. A real estate agent is involved in the sale of homes and properties. He lacks the knowledge on how a business should be prepared and sold. As a result, the support you get from him will be more than lacking. He will have to learn on the go hence rely heavily on guesswork. This is not the case with an experienced business broker who has already sold many businesses like yours before.
His training and education is not focused on the sale of businesses
Another reason why you should only stick with a business broker is because real estate agents give training and education that is completely different from what business brokers get. A business broker Orange County understands the complexities of selling a business and knows what is involved to market and present a business for sale effectively. They know how to maintain full confidentiality throughout the sale. Brokers have also honed their skills in the complexities of negotiating and accounting. What is more is that the marketing channels and networks used by a broker are different from those used by real estate agents.
His professional network is not made of business brokers
The grand reason why you should leave the burden of selling your business to a business broker is because the professional networks of the broker are made up of other professionals involved in the sale of businesses. This is the same way as the network of real estate agents is made up of other real estate agents. The memberships of the business broker are different from those of a realtor.
All things considered, working with a business broker Orange County when selling a business is the safest bet. You wouldn’t let a car salesman sell your business, would you?
One of the duties of a business broker Orange County is to guide you through the due diligence process. Due diligence is an important step in the sale of a business which helps the buyer determine if your business is a good investment. Focus here is to gather as much information as possible in order to make the most informed decision. But what are the steps involved in due diligence?
Execution of the LOI
The first thing that has to be done is the submission of the Letter of Intent by the buyer. This is a document that discusses the particulars of the deal and also involves a down payment of at least 10% of the total selling price. The down payment is fully refundable and the LOI is not binding. The buyer must sign a non-disclosure agreement prior to being shown into the secrets of the business. The LOI will also include the duration of due diligence. This can be between a week and 4 weeks. Your business brokers Orange County will help review and negotiate the terms in the LOI.
Conversation with the business owner
Once the down payment has been put in escrow and the LOI has been executed, the first step in due diligence is a conversation with the seller. This is done to get an overview of the business. The buyer will also want to have a conversation with the landlord to discuss the transfer of leases. Often times, landlords are willing to draw up new leases for the new business owner. If using SBA loans, the SBA may require a ten-year lease option agreement.
Thorough vetting of financials
Once matters on the lease agreements have been settled, the buyer will now do a deep dive into your business. Focus is to go through your financials. The buyer gets access to the profit and loss statements, income statements, bank statements, balance sheets, tax returns, credit card transactions and all other financial information that pertain to your business. The objective here is to see if the financials represented in your marketing materials were accurate.
The last step involves the closing attorney and a business broker Orange County. The two collaborates to develop a closing document for the two parties to review. Closing documents will include the bill of sale, Asset Purchase Agreement, Promissory Note and Uniform Commercial Code filing. This will also include the seller and buyer closing settlement statements.
Selling a business is not as straightforward. This is why you must always involve experienced business brokers Orange County to guide you through the process. Find someone that has experience selling businesses that are similar to yours.